North Central Illinois Economic Development is on the right marketing track, based on comments from guest speakers at an Investor Reception on January 24.
Tracey Hyatt Bosman, managing director of Biggins Lacy Shapiro & Co in Chicago, said “NCI is doing the Exact Right Thing in Marketing the Region.” Perceptions of Illinois, concerns about Labor availability in rural areas, and competition all impact the region’s ability to attract new industry. “But regional marketing to consultants and brokers helps get the word out, and correct perceptions.”
“Investors in NCI are making a difference,” said Steve Aubry, Chairman of NCI. The Marketing organization is less than 3 years old, and yet has achieved significant results. Aubry and Baker explained that Industrial inquiries are up 400 percent, and that the region is now pro-actively being marketed to Brokers, Consultants, and Executives.
Chris Gary, senior vice president of NAI Hiffman Commercial Real Estate in Oak Brook, said the real estate and property tax rates are an advantage, but these represent just 10 percent of a company’s costs. Transportation costs (70 percent) and labor costs (20 percent) drive project decisions, according to Gary. Our region must compete in these areas.
“Really push the prepared sites that are ready to go,” Gary said. He encouraged cities to make infrastructure investments, pre-engineering, and pre-permitting, which reduce a company’s development timeline and costs. “NCI is promoting shovel ready sites,” said Gary.
Bosman and Gary reiterated comments recently made by Site Consultant Jerry Szatan of Chicago. "A regional economic development marketing effort is a critical step to create interest in the area. The first goal of a regional marketing effort is to fill the pipeline with interest. It may be frustrating, but it is the case that EDO's can't control the timing of investment decisions,” said Szatan.
“NCI is the only organization in the region that is marketing Full-Service Industrial Sites for prospects,” said Ivan Baker, president of NCI. “Those are the sites that get picked first,” said Chris Gary.
“The challenge, in my opinion, for Illinois — once you get outside Chicago — is why wouldn’t they go to Texas or South Carolina?” said Bosman. “That becomes a hard sell, quite frankly,” she said. Since only 16 percent of all Illinois projects have occurred outside of Metro Chicago for the past 2 years, regional organizations like NCI have to do extra-aggressive marketing.
Making sure the region is known by Prospects, NCI is the only organization that is pro-actively marketing the region for new industry, new jobs, and new tax revenue.
“We’re not sitting back and waiting for others to send us an occasional inquiry,” said Baker. “We meet with and promote our advantages to broker and consultant organizations, in order to get more leads. And it is working.”